BANK OF GHANA
NOTICE TO THE PUBLIC
NOTICE NO. BG/TD/2013/36
PROSPECTUS FOR THE ISSUE OF GH¢100 MILLION
GOVERNMENT OF GHANA 7-YEAR FIXED RATE BOND
1. INVITATION OF BIDS
Further to the Bank of Ghana Notice No.: BG/TD/2013/32 on the Issuance
Calendar for Government of Ghana securities for the half-year period, 1st
July – 31st December, 2013, the Bank of Ghana invites bids for the issue of
the above instrument on behalf of the Government of Ghana through the
Auction process.
The instrument will be Ghana cedi-denominated and will be issued at par. It
shall bear a coupon rate equal to the highest competitive bid accepted at
the auction for the security. The coupon rate so fixed shall carry throughout
the term of the security.
2. TERMS
Issuer: Government of Ghana
Purpose: Debt Restructuring/Benchmark Instrument/Finance Capital Project
Amount: GH¢100 million
Issue Method: Through an auction to be held on 22nd August, 2013
Price: The instrument shall be issued at par.
Denomination: Each Bond shall have a face value of GH¢1.00
(one Ghana cedi).
Minimum Bid: GH¢50,000 and multiples of GH¢1,000 thereafter.
Coupon: To be determined at the auction to be held on 22nd August, 2013,
as described under (1) above.
Interest Payment: Semi-annually from the Issue Date, in December
and June. The amount of interest paid on every coupon payment date
shall be equal to the principal amount at the coupon rate for half-year.
Withholding Tax: The Internal Revenue Act 2000 requires the Bank
to withhold tax in respect of interest payments to resident corporations
holding Bonds on their own account at the rate of 10% of the gross
amount of the payment. Interest paid to a non-resident holder
(individual or Corporate) on Bonds issued by the Government
of Ghana is exempt from tax.
Application Methods: Bids may be made on either a competitive or
noncompetitive basis through Primary Dealers only.
Primary Dealers may also submit bids on their own behalf.
Bids received will not be revocable.
Participation: The 7-year Fixed Rate Bond shall be available to
both resident and non-resident investors.
Closing Date: Bids must be electronically delivered to the Central
Securities Depository Auction Module not later than1.30 pm on
Thursday, 22nd August, 2013.
Allocation of Bids: The Bank of Ghana reserves the right to reject any
or part of any competitive or non-competitive bid. Subject to this, competitive
bids will be ranked in ascending order of the annual rate of interest bid.
Securities will be sold to applicants whose competitive bids are at or below the
highest rate at which the Bank of Ghana decides that any competitive bid would
be accepted (the "uniform allocation rate"). Applicants whose competitive bids
are accepted will purchase securities at par with the coupon fixed at the uniform
allocation rate.
Competitive bids which are accepted and which are made at rates below the
uniform allocation rate will be satisfied in full. Competitive bids which are
accepted and which are made at the uniform allocation rate may be satisfied
in part only. Non-competitive bids will be accepted at the uniform
allocation rate.
Settlement: Settlement shall take place on 26th August, 2013.
Register: The Register will be maintained on a book-entry system on
the Central Securities Depository and therefore no certificates will be issued.
Listing of Bonds: The security shall be listed on the Ghana Stock
Exchange (GSE) for secondary market trading both on the floor of the Exchange
and over the counter (OTC). Trading in the securities is subject to the listing rules
of the GSE for Government Securities.
Redemption The Bond shall be redeemed by the issuer on the maturity date,
which shall be 17th August, 2020. Such redemption shall be at par.
ANDREW BOYE-DOE
THE SECRETARY
30th July, 2013
